Bitcoin dropped below $80,000 on Sunday, falling over 3% in just two hours. The cryptocurrency market saw widespread losses as global markets reacted to uncertainty driven by new U.S. trade tariffs. President Trump’s announcement last Wednesday set off sharp declines in both crypto and stock markets. Ethereum dropped nearly 8% in 24 hours, and the ETH/BTC ratio hit its lowest point in five years. The GMCI 30 Index, tracking the top 30 cryptocurrencies, fell over 6% in a day and is down more than 32% since the start of the year.
The fall in crypto markets came alongside major declines in U.S. stock indices. The S&P 500 and Nasdaq Composite both closed nearly 6% lower on April 4. Analyst Holger Zschaepitz posted that the stock market lost $8.2 trillion in value—more than during the worst week of the 2008 financial crisis. A chart shared by Zschaepitz from Bloomberg highlighted the collapse in global market capitalization.
Fears of a larger crash grew over the weekend, with comparisons made to the 1987 “Black Monday” crash. CNBC’s Jim Cramer said on X that nothing so far has taken that scenario “off the table,” and added, “Those who bottom-fished are sleeping with the fishes…so far.” He noted that circuit breakers in markets might provide some delay but not necessarily a reversal.
Bitcoin’s price movement has sparked mixed reactions from traders. Daan Crypto Trades pointed out that Bitcoin’s volatility is compressing while the VIX—Wall Street’s volatility index—has reached levels not seen since the 2020 COVID crash. He said such a contrast between crypto and stocks is rare and believes a major move in Bitcoin is likely next week, depending on how the stock market opens.
Some see the recent drop as temporary. Trader Cas Abbe wrote that the decline looks similar to Bitcoin’s August 2024 crash and the post-ETF dip. He said he is watching for a weekly close above $92,000 to confirm a return to an upward trend.
Max Keiser predicted a steep rise for Bitcoin, saying it could hit $220,000 by the end of the month if a large-scale market crash pushes investors into Bitcoin as a safe asset. “A 1987 style mega crash will push Bitcoin to $220,000 this month as trillions in wealth seek the ultimate safe haven: Bitcoin,” he wrote in response to Cramer.
While most cryptocurrencies fell, Pi Network gained around 1.5% and ZCash rose 0.7%, according to The Block’s data. Injective CEO Eric Chen said Bitcoin’s resilience may be linked to post-ETF demand from institutional investors like retirement funds and companies such as MicroStrategy and GameStop.
